the esports industry to date
TRANSCRIPT
www.newzoo.com© 2015 Newzoo
The eSports Industry to DateThe Drivers Behind Current and Future Growth
Emily SouzaClient DirectorSan Francisco
9 SEPTEMBER 2015 | SAN FRANCISCO
www.newzoo.com© 2015 Newzoo
Emily SouzaClient DirectorSan Francisco
9 SEPTEMBER 2015 | SAN FRANCISCO
www.newzoo.com© 2015 Newzoo
Emily SouzaClient DirectorSan Francisco
9 SEPTEMBER 2015 | SAN FRANCISCO
www.newzoo.com© 2015 Newzoo
Weekend of 22/23 AugustAnother Landmark Moment in Esports History
Emily SouzaClient DirectorSan Francisco
ESL ONE COLOGNECS:GO
LANXESS ARENA, COLOGNE
LCS EUROPE FINALSLEAGUE OF LEGENDS
HOVET ARENA, SWEDEN
LCS NORTH AMERICA FINALSLEAGUE OF LEGENDSMADISON SQUARE GARDEN, NYC
OGN MASTERSHEARTHSTONEYONGSAN ESPORTS STADIUM, SEOUL
>100THOUSANDATTENDEES
>50MILLIONVIEWERS
9 SEPTEMBER 2015 | SAN FRANCISCO
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www.newzoo.com© 2015 Newzoo
What’s Special?
$1.2M Per Player is more than the
2014 Soccer World Cup 3rd Place Prize
Money.
What’s Special?
$16M Was CrowdFunded by $2.50 of every $10.00 donation, making Valve $54M
$18MPrize Pool
$6MWinning Team
New Direct Esports-Related Revenue Streams
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20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
700,000
800,000
900,000
1,000,000
Average Daily DotA 2 Players Average Weekly DotA 2 Players DotA2 Twitch Viewership
ORIGINAL ESPORTS DRIVER: GET PEOPLE PLAYING
SOURCE: GLOBAL GROWTH OF ESPORTS REPORT PREMIUM | Q3 2015 UPDATE
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Sizing The Esports Economy Without inflating the potential amidst all the buzz 9 SEPTEMBER 2015 | SAN FRANCISCO
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NEWZOO
SAN FRANCISCO AMSTERDAM SHANGHAI
Emily SouzaClient Director
We are an innovative global market research and predictive analytics firm with a primary focus on games. We provide our clients with a
mix of market trends, financial analysis, revenue projections, consumer insights, data modelling solutions and predictive analytics
services across all continents, screens and business models. Newzoo works for the majority of top 25 public companies by game revenue
globally, many independent game developers as well as leading global hardware and media companies.
The Experts On All Things Games. THESE COMPANIES CURRENTLY SUBSCRIBE TO NEWZOO’S SERVICES
www.newzoo.com© 2015 Newzoo © 2015 Newzoo
SAN FRANCISCO AMSTERDAM SHANGHAI
Emily SouzaClient Director
We are an innovative global market research and predictive analytics firm with a primary focus on games. We provide our clients with a
mix of market trends, financial analysis, revenue projections, consumer insights, data modelling solutions and predictive analytics
services across all continents, screens and business models. Newzoo works for the majority of top 25 public companies by game revenue
globally, many independent game developers as well as leading global hardware and media companies.
The Experts On All Things Games. THESE COMPANIES CURRENTLY SUBSCRIBE TO NEWZOO’S SERVICES
NEWZOO
www.newzoo.com© 2015 Newzoo
EVOLUTION OF THE ESPORTS TREND | 2013
“PC gamers have grown to expect a high quality game, with the ability to invest oneself long term, due to persistent profiles, online worlds, a way to play with friends etc. PC game developers have always understood that and delivered the type of experience that keeps gamers playing their games for month even years at a time.” - Donovan Duncan, VP Marketing, Curse Inc.
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EVOLUTION OF THE ESPORTS TREND | 2014
“As one of the fastest growing sports in the world, eSports only lacks exposure and deeper understanding. Newzoo has been significant help to eSports in that regard. Their reports have the shaped initial understanding of the market as their information is clear and allow deep insight in a rather unexplored business.” - Fabian Mallant, Manager Unicorns Of Love
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EVOLUTION OF THE ESPORTS TREND | 2015
“Publishers will want to take a strategic look at their video sharing infrastructure based on the convergence of games and video. The business opportunities are just beginning to emerge, but clearly this new surge in gaming creativity will demand tremendous scalability and innovative solutions.” - Anne Blanchard, Gaming Solutions, Limelight Networks,
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The eSports Economy TodayCompanies, Audience, Revenues 9 SEPTEMBER 2015 | SAN FRANCISCO
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THE ESPORTS ECONOMY
© 2015 Newzoo
e.g.
e.g.
e.g.
e.g.
e.g.
e.g.
© 2015 Newzoo
www.newzoo.com© 2015 Newzoo
37% 34%GLOBAL
$252M+30% YoY
NAM
$93.2M+32% YoY
APAC
$85.2M+28% YoY
Revenues 2015 | Esports| Global, NAM , APAC
Esports Enthusiasts
147M70M25M17M
2014JAN-MAY
$7.9M
2015JAN-MAY
$15.7M
$36M+82% YoY
$71M+97% YoY
113M+27% YoY
2014
2015e
Occasional Viewers
Prize Money2014 vs 2015e | Esports | Global
Audience | 2015 | Esports | Global
(>once a month) (>once a month)
Source: Newzoo, The Global Growth of Esports: Trends, Revenues & Audience Towards 2017
29%
ESPORTS AUDIENCE AND REVENUES IN 2015
Of all eSports viewers
40%does not play
the games themselves
KEY FACT
Spectator Sport
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53%Have a
full-time jobvs. 37% of the total population
30%Is in the high
income bracket vs. 22% of the total population
eSports Sponsors
30%Are
femalevs. 48% of all gamers
55%Is between 21
and 35 years oldvs. 33% of all gamers
HUGE GROWTH POTENTIAL FOR A VALUABLE AUDIENCE
ESPORTS ENTHUSIASTS ARE A VALUABLE TARGET GROUP IN TERMS OF DEMOGRAPHIC PROFILE & ARE BIG DIGITAL MEDIA SPENDERS
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
www.newzoo.com© 2015 Newzoo
Device used towatch online video
© 2014 Newzoo, Graph generated in and exported from the Newzoo Data Explorer
eSports EnthusiastsThat watch online video
Occasional ViewersThat watch online video
Total PopulationThat watch online video
10.1 Million 13.0 Million 120.7 Million
United States
34%of Esports enthusiasts use a tablet to
watch online video content versus 22% for the average American aged 10-65
OFFERING ENTERTAINMENT ACROSS ALL SCREENS
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SNEAK PREVIEW ESPORTS QUARTERLY UPDATE
$252M$194M
$278M
$452M$520M
YoY GROWTH
+29.6%
YoY GROWTH
+43.4%
2014 2015e 2017e
2014-2018 CAGR
+38.9%
NEW
Q3UPDATE
NEW
Q3UPDATE
SOURCE: GLOBAL GROWTH OF ESPORTS REPORT PREMIUM | Q3 2015 UPDATE
Biggest Audience KPI Growth: Occasional Viewers Becoming True Esports Enthusiasts
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e
$9.7M
$3.6M $4.4M $6.1M $6.4M$3.5M $5.2M
$13.1M
$19.8M
$36.0M
$71.0Me
+97%YoY
-48%YoY
2009: Korea’s Esports Scene Takes a Blow
Legislations in South Korea implementing bans and curfews on gaming, a feud between the Korean Esports Association and Blizzard, and the falling popularity of Starcraftcontributed to the dip in prize money in South Korea between 2008 and 2012. Since then, esports broadcaster MBC was discontinued and OnGameNet is a much smaller operation whose content is no longer broadcasted on TV ….
2014: US & China Lead
Source: Newzoo, The Global Growth of Esports: Trends, Revenues & Audience Towards 2017
Korea has never fully recovered, rendering the US today’s #1 in the accelerating esports market, with China close on its heels ....
IT IS EASY TO OVERESTIMATE THE MARKET ….
In 2007,MBC Game and OnGameNet
reportedly made $200M in esports revenues, mainly
through broadcast TV
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Betting & Fantasy LeaguesWhere there is competition, there is betting… 9 SEPTEMBER 2015 | SAN FRANCISCO
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ESPORTS BETTING ALREADY HOT
EXAMPLES OF START-UPS AND TRADITIONAL FORCES JUMPING ON THIS GROWING NICHE
© 2015 Newzoo
eSports is Pinnacle’s
7th Biggestmarket in terms of
volume, bigger thanGolf & Rugby
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
Eilers Research estimates:$250 million now
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SPECIALIST STARTUPS ARISE: BETTING & FANTASY LEAGUES
Eilers Research estimates:$23 billion (!?) in 2020.
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PLAYING FOR REAL MONEY IN ONLINE CASINO’S | US | 2015 BETTING/WAGERING ON REAL-TIME EVENTS (E.G. HORSE/SPORTS) | US | 2015
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
33% Of Esports Enthusiasts Already is Your Client, vs 15% for Gamers and 8% for All.
© 2015 Newzoo
GOOD NEWS: ESPORTS ENTHUSIASTS LIKE A BET
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eSports Versus Sports Does it make sense to compare? 9 SEPTEMBER 2015 | SAN FRANCISCO
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2.2Bn
1.7Bn
2.1Bn
SportsFans
Gamers
1.6Bn
Active inSports
2014 201720142014
89M
145M
94M
IceHockey
EsportsEnthusiasts
2014 20172014
151M
American Football
2014
AllSports
AllGamers
IndividualSports
EsportsEnthusiasts
vs. vs.
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SPORTS & GAMING AUDIENCES EQUAL
THE NUMBER OF GAMERS COMPARE WELL WITH SPORTS FANS, ESPORTS COMPARABLE IN SIZE AS INDIVIDUAL SPORTS
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
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TOTAL ESPORTSREVENUES
Esports Growth ScenariosBased On Annual Revenue per Enthusiast
$1Bn
Report Scenario
AlternativeOptimisticScenario
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$2$3
$2
$3
$5$7
$15
$1.1Bn
$0.5Bn
$1.0Bn
$3.0Bn
$56
$20
AllSports
IndividualSports
2014 Revenues/FanGlobal Revenues Divided by Fans
$2Esports
AVERAGE REVENUE PER ENTHUSIAST
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TOWARDS A $1BN ESPORTS ECONOMY
REVENUES PER ESPORTS FAN COMPARED TO THOSE OF SPORTS SHOWS POTENTIAL
© 2015 Newzoo | Source: Global Growth of Esports Report Premium
© 2015 Newzoo
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eSports Pace of GrowthOverarching trends push esports to maturity 9 SEPTEMBER 2015 | SAN FRANCISCO
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PRO PRO
PRO
CONSUMER GENERATED CONTENT & DIRECT
CONSUMER EARNINGS“POWER TO
THE PEOPLE”
ART/DESIGNMade by “professionals”
MOVIES/GAMESMade by “professionals”
ADVERTSING/MAILMade by “professionals”
Enabling Platforms & ToolsCurse, Twitch, YouTube Channels, Fundly, Instagram …
2015
© 2015 Newzoo
EXPERIENCE CREATE
ESPORTS FUELED BY HUGE CONSUMER TRENDS…
NEWZOO REPORTS“Power to the People” | “The Consumer As Producer”
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… AND MANY FACTORS DETERMINE PACE OF GROWTH
More Genres & Geographic Depth
Competition Regulations& Content Rights
Alignment of Traditional& Digital Media
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WHILE WE SORT THIS ALL OUT….
15TH OF JULY 2015
$20,000 PRIZE MONEY10TH OF AUGUST 2015
$26,000,000 IN FUNDING
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FULL 68-PAGE REPORT AVAILABLE NOW. PREMIUM SERVICE INCLUDES QUARTERLY UPDATES. NEXT UPDATE: 15 SEPTEMBER
www.newzoo.com/esportsreport
Emily SouzaClient [email protected]
YOU CAN COUNT ON US TO KEEP TRACK.